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Reinventing the way
organizations work
Small Large
In what kind of
organization you work?
Yes No
Are you excited
by your work?
Yes No
Do you have the freedom
you wish at work?
Yes No
Are you tapping into
your talent everyday?
Yes No
Do you think that a new
paradigm is underway?
Something is broken in the existing
organization management method
Happy & Engaged Employees
A new paradigm is emerging
• There is no structure;
• No management;
• No leadership;
• Everyone is equal;
• It's about empowerment;
• It's still experimental.
Misperceptions
Richard Teerlink
Employees
receive part of the
company profit
Co-create vision of the
company with employees
through Unions
Eliminated fixed teams
and created natural
working circles
Bill Gore
Make money
and have fun!
Employees are defined
as “Associates” with
shared profit
6 months integration
period to find the
Sweet Point
Associates are assigned a
mentor to help them with
personal development
Make natural
leaders emerge
The big developmental stages of mankind
TRIBAL AGE
10,000 years ago
AGRARIAN AGE
4,000 years ago
SCIENTIFIC AGE
400 years ago
INFORMATION AGE
20 years ago
?
Today
How many Brains do we have?
Distributed
intelligence
How have human organizations
evolved throughout these
developmental stages?
Information age
Scientific / Industrial age
Agrarian age
Tribal age
• Thrives in chaotic
environments
• Constant exercise of power by
chief to keep troops in line
• Breakthroughs: division of
labor, command authority
• Fear is the glue
• Highly reactive,
short-term focus
RED
• Strong sense of self
• Individual rights
based on strength
• Inability to organize beyond
3-4 degrees of power;
• High rates of murder;
• Thrives on instability;
Militias in South-Sudan
AMBER
• Formal roles in
hierarchical pyramid
• Top-down command
and control
• Stability valued above all
• Replicable process
(bureaucracy)
• Self-discipline and authority,
• Safety, Long-term perspectives
• Capacity to create world-wide
organizations
Tywin Lannister
• Inflexible
• Ethnocentric
• Fears Innovation
Catholic Church, Army,
Government agencies,
Public schools
ORANGE
• Beat the competition
• Achieve profit and growth
• Innovation is key to stay on top
• Management by objectives
(command & control on what;
freedom on the how)
• Accountability
• Meritocracy
• Unprecedented abundance,
• Scientific curiosity & innovation,
• The optimism to risk
• Materialistic,
• Indifferent to nature,
• Social inequality,
• Loss of community,
• Unhappiness at the bottom
of the pyramid
Multinational
companies
“Number one, cash is king...
number two, communicate...
number three, buy or bury the
competition.”
Jack Welch
Coming to the
company to earn a
living… it is not for
shining & passion
Feeling
of being
powerless…
… also at
the higher
level!
Significance
Are you contributing to a better future?
GREEN
• Still a pyramid structure
• Focus on culture and
empowerment to achieve
extraordinary motivation
• Values driven culture
• Stakeholder model
• World-centric and
socially responsible
“Corporate culture outperforms strategy”
Peter Drucker
• Happy inclusion,
• Inspired work,
• Empowerment,
• Humble leadership,
• Benefits the world;
• Consensus traps,
• Closed World-view,
• Non-rational is better
• Fear of power,
• Ineffective
Ben & Jerry's, DaVita,
Southwest Airlines
• Organizations as living systems
• Trust vs. control
• Roles, not job titles
• Egos claimed and tamed
• Compassion for all worldviews
TEAL
Living
Organism
People are
accountable and
responsible
People are creative,
thoughtful,
trustworthy adults
People are fallible
and make
mistakes
Basic Assumptions
1.
2.
3.
Self-management1.
LOW COMPLEXITY
HIGH COMPLEXITY
HIGH
COMPLEXITY
“Because hierarchy is always
a pyramid structure, it pushes
all complexities to the top”
Since the 18° century
• 80s: Organized in 1 organizations (ORANGE!)
• Specialize nurses, call center, organize
productivity & schedule (timing & journey)
local/region/nation managers…
• John De Block
• From 10 to 9k ppl in 10 years
• 90% Market Share
• Self-organization & self-management!
12
Per team
25
Head Quarter
If you have many people:
you certainly require a structure
but the boss is not necessary
Case Study: Home Nursing Care
Autonomous
teams
No bosses or
organization chart
No job descriptions
or job titles
Distributed
decision-making
Open Information
flow
Conflict
resolution
In practice…
Hierarchical
decision
making
Consensus
• Endless discussion
• Dilutes responsibility
PEER
ADVICE
PROCESS
Anyone in the organization can
make any decision…but you
need to get Expert Advice
Decision Making
• Write a letter to give you a % increase
• Every factory chooses a committee in the election
• The committee arranges all the letters
• The committee advises only
but you take full responsibility
• All information is open to the public
Advice Process on Salary
2.
1. Self-management
3.
2. Wholeness
• Rational
• Resolute
• Decisive
• Determined
• Clear attitude
• Emotional
• Spiritual
• Intuituve
Living vs. Making a living
“People need more than a
pay-check in their lives
to gratify them.”
Ricardo Semler
Tap into your
reservoir
of Talent
Excitement
Follow-up on people
“If people aren’t motivated,
they don’t need to sign-up
for a motivational training.
They need a different job!”
Ricardo Semler
• No Formal Job Description
• Free Job Rotation
Self-management Safe and supportive
environment
Explicit ground
rules
Reflective spaces Ego-free Meetings Physical Spaces
In practice…
Time
Money
Energy
Young Adult Old
The True Story of Life
People have learned to answer
an email on Sunday evenings,
but they don’t know how to go
to see a movie on Monday
afternoon...Locked in routines.
Retire a Little Up’n Down Pay Work-n Stop Plan
“We adapt to our employees’ needs so they can pursue their self-
interest and fulfill the company’s agenda at the same time. While
they’re busy satisfying themselves, they’ll satisfy the company’s
objectives, too. They succeed, we succeed.””
Ricardo Semler, The Seven-Day Weekend
Ego-free meeting
Every time I feel conflict, the person
in charge will undertake a very
simple job of ringing the bell
Work Environment
Welcome to Mini-Nod
3.
2.
3.
1. Self-management
Evolutionary purpose
Wholeness
Profit is like the air we breathe.
We need air to live, but we don’t live to breathe.
2X
Buurtzorg’s patients get
released from care twice
as fast as competitors.
50%
of the prescribed
hours of care
The role as a leader in this case it
is not to instruct dictatorship "to
proceed in this direction“.
Rather, where the
organization wants to
head… It is to listen. In
other words, leadership
Distributed Innovation
Employees led innovation
Employee Intrapreneur
Paul Buchheit
Myriam Sidibe
Global social mission
director of Lifebuoy soap Tamara diCaprio
Reporting to make everyBU fiscally
accountable for its energy consumption
Simon Berry
How to get there?
Transparency
of salaries
No commission for sales
people (= collaboration!)
No HR, recruitment
in functional teams
Focus on the Values of the
company (not on budget)
Start
Small
Foster Transparency
Exchange best practices
The top management is key
Level 1
Engage
Options
Activator
Create
Being
Visionary
Innovate
Inclusion
Charismatic
Nurture
Others
Servant
Compensate
Balance
Transactional
Confront
Blame
Controller
Level 2 Level 3 Level 6Level 5Level 4 Level 7
Avoid
Self
Abdicator
ACTION
FOCUS
LEADERSHIP
STYLE
AnabolicCatabolic ENERGY LEVEL
GrowthFixed MINDSET
The right level of consciousness
From Theory
to Practice
THANK YOU
manu@babele.co

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Reinventing the way human organizations work